China Central Bank Unit Took Shares as Loan Repayment: ReportBloomberg News
Wutongshu and units received holdings in ICBC, BOC, and others
China Securities Finance bought shares to support market
China Securities Finance Corp., which was tapped by the government to stabilize stocks during the summer rout, transferred some of its holdings in Chinese banks and other companies to the central bank as partial repayment of loans it received to purchase shares, China Business News reported, citing an unidentified person.
The report provides an explanation for the earlier disclosure that Wutongshu Investment Platform Co., a wholly owned unit of State Administration of Foreign Exchange, took stakes in Industrial & Commercial Bank of China Ltd. and Bank of China Ltd., two of the country’s four largest banks. Two subsidiaries of Wutongshu also boosted their stakes in firms including Everbright Securities Co. and Shanghai International Port (Group) Co., according to the report, citing companies’ annual results.
SAFE is part of the People’s Bank of China, the nation’s central bank.
China Securities Finance received more than $400 billion from the central bank and other sources to help prop up share prices after the nation’s stocks crashed in June. The firm repaid some of those loans by transferring stocks it purchased during the market support operation, the report said.
The Shanghai Securities News reported last month that yuan-denominated shares held by Wutongshu and its two subsidiaries exceeded 27 billion yuan ($4.2 billion).
— With assistance by Jun Luo